Detailed Answer
Under Idaho law, surplus funds may remain if a foreclosure sale generates more money than needed to satisfy the secured debt, sale costs, taxes and junior liens. Idaho Code Title 45, Chapter 15 governs nonjudicial foreclosure sales and the distribution of proceeds.
1. Trustee’s Statement of Sale and Distribution
The trustee (often a private trustee or county sheriff) must file a statement of sale and distribution with the district court clerk within 60 days of the sale. This document records the sale price, sums applied to senior liens, costs, taxes and any remaining balance. See Idaho Code § 45-1506: Distribution of Foreclosure Proceeds.
2. Public Records Search
Visit or contact the district court clerk’s office in the county where the property is located. Request the trustee’s statement of sale and distribution. Many counties allow online searches of foreclosure dockets and filings. The statement will reveal any surplus amount held by the court.
3. Filing a Claim for Surplus
If the statement shows surplus proceeds, interested parties must file a claim within one year of the sale date. Idaho Code § 45-1506(4) states that junior lienholders or former owners may apply to the court clerk by submitting:
- A written application identifying the foreclosure sale date and property.
- Proof of lienholder status or former ownership (e.g., recorded deed of trust or deed).
- Any required filing fee, set by local court rules.
Late claims are barred, and unclaimed funds may revert to the former owner or the state.
4. Priority and Distribution Rules
Liens rank by their recording dates. Senior liens, secured costs, taxes and trustee fees receive payment first. Any surplus then goes to junior lienholders in order of priority, then to the former owner if no junior liens exist.
Helpful Hints
- Record your lien or security interest promptly to establish priority.
- Keep copies of all foreclosure sale notices and trustee communications.
- Verify the exact sale date and document numbers when requesting records.
- Note the one-year deadline to file a surplus claim; missing it forfeits your right.
- Confirm filing procedures and fees with the local district court clerk’s office.
Disclaimer: This article is for educational purposes and does not constitute legal advice. Consult a licensed Idaho attorney for guidance on your specific situation.